Oakley Company manufactures and sells adjustable canopies that attach to motor homes and trallers. The market covers both new units as well as replacement canopies. Oakley developed its 202 business plan based on the assumption that canoples would sell at a price of $490 each. The variable cost of each canopy is prolected at $290, and the annual fixed costs are budgeted at $109,000. Oakley's after-tax profit objective is $345,000, and the company's tax rate is 40 percent While Oakley's sales usually rise during the second quarter, the May financial statements reported that sales were not meeting expectations. For the first five months of the year, only 440 units had been sold at the established price, with variable costs as planned It was clear the 202 after-tax profit projection would not be reached uniess some actions were taken, Oakleys president, Melanie Grand, assigned a management committee to analyze the situation and develop several alternative courses of action. The following mutually exclusive alternatives were presented to the president - Reduce the sales price by $10. The sales organization forecasts that with the significantly reduced sales price, 3,600 units can be sold during the remainder of the year. Total fixed and variable unit costs will stay as budgeted. - Lower variable costs per unit by \$25 through the use of less expensive raw materials and slightly modified manufacturing techniques. The sales price also would be reduced by $30, and sales of 2.495 units for the remainder of the year are forecast. - Cut fixed costs by $10,900 and lower the sales price by 10 percent. Variable costs per unit will be unchanged Sales of 2.295 units are expected for the remainder of the year. Required: 1. If no changes are made to the selling price or cost structure, determine the number of units that Oakley Company must sell a. In order topreak even. b. To achieve its after-fax profit objective. 2. Calculate the after-tax profit from each aiternative. Which one should Oakley choose to achieve its objective? Complete this question by entering your answers in the tabs below. If no changes are made to the selling price or cost structure, determine the number of units that Oakley Company m a. In order to break even. b. To achieve its after-tax profit objective. Note: Do not round intermediate calculcations and round your final answers up to the nearest whole number: Complete this question by entering your answers in the tabs below. Calculate the after-tax profit from each aiternative. Which one should Oakley choose to achieve its ob Note: Do not round intermediate calculations